Peru Budget Committee Approves Supplementary Credits Bill

Peru's Congressional Budget Committee has approved a supplementary credits bill (Proyecto de Ley 14799/2025-PE) with 28 votes in favor, one against, and zero abstentions. The bill authorizes internal bond issuance to finance public investment projects aimed at closing infrastructure gaps, maintaining state services, and ensuring a democratic transition. The approval comes amid reports that over 2,000 emergency projects are stalled or abandoned. Separately, oil prices have fallen to $70 per barrel, though the reduction has not yet reached the Peruvian market. The bill now moves to the full Congress for debate.

Global Impact

Politically, the bill supports the government's transition agenda and may improve investor sentiment toward Peru's fiscal management, though the reliance on bond issuance raises debt sustainability questions. Economically, the infrastructure spending could stimulate growth in the short term, but the large number of stalled projects suggests implementation bottlenecks.